New answers tagged risk-free-rate
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Calculating Annualized Sharpe Ratio
Let's assume you had exactly 1.6% return per trade. Then your annualized return = (1+0.016)^4-1=~6.555%
Your annualized stdev = 0.022*sqrt(4)=0.044
Then your sharp ratio = (0.06555-rf)/0.044
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Calculating Annualized Sharpe Ratio
Hi and welcome to the forum.
For performance analytics, the correct way would be to take the whole duration of your portfolio and compute the average daily return and daily volatility (from the log ...
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